Inter-ministerial panel Telecom Commission is scheduled to meet on Friday to discuss the recommendations of a committee on financial stress in the sector, an official source said. “Telecom Commission will meet on September 29,” an official source, who did not wish to be named, told.
When asked if the inter-ministerial group’s recommendations on the telecom sector will be discussed, the official replied affirmatively and said there are some other important pending issues that will come up for the discussion. In the last meeting held on September 8, the commission had postponed a decision on measures to provide relief to the stressed industry as it sought more details on some of the suggestions, including deferred spectrum payment liability.
The IMG — tasked with finding a remedy to the financial difficulties of the telecom sector — had recommended that the payments for spectrum purchased in auctions be made in 16 instalments (16 years) as against the current practice of 10 years. The IMG had also favoured a cut in interest rates on penalties by switching from PLR based to MCLR based rate, which could provide relief of about two percentage points in the current situation. ALSO READ: India mobile sector to create $217 billion value by 2020: Manoj Sinha
The Indian telecom industry, which is in the midst of an intense tariff war, owes a staggering Rs 4.6 lakh crore to various financial institutions and banks. Old telecom operators have blamed their declining margins to tariff war triggered by entry of Reliance Jio about a year ago.